Mexico Important Trading Partner for Corn

Nebraska Governor Pete Ricketts asked grain industry officials from Mexico and the United States join him Tuesday for a press conference to highlight the importance of Mexico to U.S. agriculture and how the North American Free Trade Agreement (NAFTA) has benefited both countries.

“Bilateral trade with Mexico has helped grow agriculture in our state over the years,” said Governor Ricketts. “Mexico is Nebraska’s largest export market for corn, dairy, sugar, and sweeteners, and second largest market for soybeans, wheat, sorghum, and distillers grains. All of this combined accounts for thousands of Nebraska jobs. I’m encouraged by local and national discussions to expand trade, and am committed to helping grow our trade relationship with Mexico so we can continue to grow Nebraska.”

The Nebraska Corn Board, the U.S. Grains Council, and the National Corn Growers Association are hosting a team of Mexican grain and industry officials in Nebraska for a town hall and industry meetings. Approximately 20 percent of U.S. corn and corn co-products are exported and Mexico is the largest market for U.S. corn. In 2016, U.S. corn exports to Mexico totaled 13.3 million metric tons (523.5 million bushels) of corn, valued at $2.5 billion. The U.S. also exported 1.9 million metric tons of distiller’s dried grains with solubles (DDGS), a byproduct of ethanol.

“Having these industry leaders here in the United States this week to share how NAFTA has impacted their companies and their country is invaluable to helping us communicate how important strong trade policy with our nearest neighbors is to the continued success of U.S. grain producers and exporters,” said USGC CEO Tom Sleight.

Jon Doggett, NCGA executive vice president and head of public policy, says NAFTA has been a major catalyst for economic growth in the corn industry and Mexico is the largest market for U.S. corn. “We will work closely with the Trump Administration and Congress to build on the successful trade relationship we have with our neighbors in Mexico, and make sure a modernized NAFTA is a win-win for both our countries,” said Doggett, who stresses calling changes in NAFTA “updating” or “modernizing” rather than “renegotiating.”

Listen to the press conference here: Nebraska presser on trade with Mexico

Agribusiness, AgWired AgNewsWire, AgWired Energy, Audio, corn, Grains, NCGA, Trade, USGC

Ethanol Groups Comment on EPA Regs

Cindy Zimmerman

Eliminating the unnecessary regulatory barrier to year-round sales of E15 tops the wish list of reforms that the Renewable Fuels Association (RFA) requested from the Environment Protection Agency (EPA) in comments to the agency Monday.

“While there are a number of EPA regulations that need reforming, the most pressing is the agency-imposed restriction that denies consumers year-round access to E15,” said RFA President and CEO Bob Dinneen.

The comments were submitted in response to EPA’s request for input on “burdensome, conflicting, or unnecessary regulations” that should be repealed or reformed, which was the result of a presidential order. Also on RFA’s list was streamlining survey programs intended to monitor and verify fuel quality and regulatory compliance, and reforming the petition process for new certification fuels (e.g., high octane mid-level blends like E25 or E30).

Comments from Growth Energy mainly urged the agency to administer the Renewable Fuel Standard (RFS) as enacted into law by Congress and make every effort to get annual renewable volume obligations proposed, out for public comment, and finalized in a timely manner. Also related to the RFS, the association called on the agency to finalize its denial of the petition to change the point of obligation.

The American Coalition for Ethanol (ACE) submitted comments last month, also putting Reid vapor pressure (RVP) relief for E15 at the top of its list.

ACE, EPA, Ethanol, Ethanol News, Growth Energy, RFA, RFS

ACE Annual Celebrating Big 3-0

Cindy Zimmerman

The American Coalition for Ethanol (ACE) is celebrating a milestone in Omaha this year – their 30th annual conference.

This year’s conference theme is Tested. Proven. Driven. The general session will include testimonials from retailers and fuel marketers on why they are selling E15 and flex fuels and a presentation on ethanol’s export market potential. In addition, the general session will decode tax reform efforts in Washington, D.C. and highlight progress toward high-octane ethanol blends.

The ACE annual meeting will be held Aug. 15-17 at the DoubleTree by Hilton Hotel in downtown Omaha and registration is now open.

Get all the details.

ACE, ACE Ethanol Conference, Ethanol

USDA Boosts Corn Use for Ethanol Forecast

Cindy Zimmerman

The latest U.S. Department of Agriculture (USDA) global outlook for grains is forecasting an increase of 50 million bushels in the amount of corn used to produce ethanol this year.

USDA Outlook Board Chairman Seth Meyer says factors contributing to the expected increase are higher gasoline consumption growth, reduced sorghum used to produce ethanol and higher expected blending. “We’ve been doing a good export business and we expect that to continue in the near term as well,” says Meyer.

Overall, total U.S. corn usage is expected to decline two percent this year, due in part to “projected feed and residual use declines as a smaller crop and increased use of ethanol by-products more than offsets growth in grain consuming animal units.”

corn, Ethanol, Ethanol News, USDA

Branstad Signs Iowa Biofuels Infrastructure Bill

Cindy Zimmerman

Iowa Governor Terry Branstad signed his last bills as governor of the Hawkeye State last week, including the Rebuild Iowa Infrastructure Fund bill (HF 643), which provides $3 million to fund the Renewable Fuels Infrastructure Program.

“Governor Branstad has been exceptionally supportive of funding renewable fuels and this infrastructure program. We thank him whole-heartedly for his leadership,” said Grant Kimberley, Iowa Biodiesel Board executive director. “This is a big win for biodiesel and other renewable fuels. The legislature had previously ended funding for the program, and in a tough budget year where other programs were eliminated, the extension of the Renewable Fuels Infrastructure Program is a clear sign of the Iowa Legislature’s support for the biofuels industry.”

Branstad, the longest serving governor in U.S. history, will soon be taking the job of Ambassador to China under President Trump. The Senate Foreign Relations Committee approved Branstad’s nomination last week and the full Senate is expected to give final approval this week.

Biodiesel, Ethanol, Ethanol News

Casey’s Offers E15 and E85 in Iowa

Cindy Zimmerman

Casey’s General Stores recently announced intentions to open 17 stations with E15 and E85 in Iowa, Illinois, and Kansas. The first of seven Iowa stations, located in Pella, is now offering E15 and E85.

“This opening marks a big milestone for E15,” said Iowa Renewable Fuels Association Managing Director Lucy Norton. “Casey’s is more than just one of Iowa’s largest fuel retailers. It’s our pizzeria, our grocery store, our coffee shop. And soon residents in several cities will have lower-cost fuel options that also support rural economies. We are confident Casey’s and its customers will have a positive experience with these fuels and soon E15 and E85 will be the new normal for Casey’s stores.”

Iowa Corn Promotion Board President Larry Klever says Casey’s announcement is great news for rural Iowa. “Iowa’s corn farmers are excited to support Casey’s in expanding Iowans choices at the pump and providing consumers clean-burning, high performing homegrown ethanol blends.” The Iowa Corn Promotion Board is providing support for Casey’s new program to offer E15 and E85 blends for consumers.

E15, E85, Ethanol, Ethanol News

REG Reports Renewable Hydrocarbon Diesel Growth

Cindy Zimmerman

Renewable Energy Group, Inc. sold almost 25 percent more fuel in the first quarter of 2017 compared to the same time last year, largely due to an increase in renewable hydrocarbon diesel gallons.

REG also experienced a full quarter of operations at its Madison, Wisconsin facility, and the impact of distillation upgrades completed in 2016 at the Danville, Illinois biorefinery to produce REG-9000 Distilled, a high quality biodiesel with better cold weather performance characteristics.

According to officials, that helped somewhat to offset the impact of the lapsed federal Biodiesel Mixture Excise Tax Credit (BTC) on January 1, 2017 but the company still posted a net loss of $15.9 million, compared to a net loss of $6.9 million in the first quarter of 2016.

“Our operating results for the first quarter of 2017 were in line with expectations given the lapsed BTC and we are well positioned should the BTC or similar incentive be reinstated as it has been in the past. We anticipate seasonally higher demand in the coming months and our biorefinery fleet is currently running at high utilization levels,” said REG President and CEO Daniel J. Oh .

The company estimates that if the BTC, or a similar domestic producer incentive, is retroactively reinstated for 2017 on the same terms as in 2016, it will increase REG’s net income for the first quarter by approximately $40 million.

Biodiesel

RFA Launches Ethanol and Boating Campaign

Cindy Zimmerman

With summer just around the corner, the Renewable Fuels Association (RFA) has launched an advertising campaign to explain the fact regarding ethanol usage in marine engines.

The campaign kicked off with a two-page ad in the latest issue of Marina Dock Age, which is delivered to nearly every marina in the United States. The campaign will also feature educational outreach and further ad placement in news outlets throughout the country.

The ad points out the fact that 10% ethanol (E10) has been used in all type of marine engines and that it is approved by major marine manufacturers including Honda, Kawasaki and Mercury Marine.

Quoted in the ad is Mike Vallentine, owner of the Crappie Masters Tournament Trail, who says 100% of the anglers in their tournament use E10 in their boats. “For three seasons now, Crappie Masters has received zero complaints, nor had any fuel-related engine problems reported,” said Vallentine.

RFA is co-title sponsor of the Crappie Masters Tournament Trail this year in an effort to educate boaters, conservation enthusiasts and consumers about ethanol’s benefits and its use in boats and other marine applications.

RFA notes that while E10 is approved for use in all marine engines, higher ethanol blends, such as E15, are not. EPA has approved the use of E15 in all 2001 and later model year vehicles, but only for on-road vehicles.

Audio, Boats, Ethanol, Ethanol News, RFA

Actions Seek to Keep U.S. Biodiesel Tax Benefits at Home

Cindy Zimmerman

Two actions last week made progress toward preventing foreign biodiesel producers from reaping the benefits of U.S. tax incentives.

Rep. Kristi Noem meets with biofuels supporters in her DC office

Rep. Kristi Noem (R-SD) announced the introduction of legislation would extend the $1-per-gallon tax credit for biodiesel through the end of 2020 and reform the credit so it is only used for fuel produced in the U.S.

“This legislation would give more certainty regarding biodiesel’s availability while ensuring the incentive is encouraging American biodiesel production, not the importation of foreign biodiesel – a move consistent with our goal of achieving American energy independence,” said Noem.

The bipartisan bill cosponsored by Reps. Bill Pascrell (D-NJ) and Dave Loebsack (D-IA) provides an additional 10-cent-per-gallon credit for small U.S. biodiesel producers. Companion legislation was recently introduced in the U.S. Senate by Senators Chuck Grassley (R-IA) and Maria Cantwell (D-WA).

“We are thrilled to see momentum building in both chambers of Congress for this important tax reform. It is long overdue to close this loophole and better align the incentive with Congress’ intent—to invest American taxpayer dollars to spur job creation here at home,” said Anne Steckel, vice president of federal affairs at the National Biodiesel Board.

At the same time, the International Trade Commission (ITC) decided to proceed with an investigation into biodiesel imports from Argentina and Indonesia. The National Biodiesel Board Fair Trade Coalition is the leading petitioner in this case which alleges serious injury to U.S. biodiesel producers as a result of a flood of imports coming from those two countries in particular.

Biodiesel imports to the U.S. have increased significantly in recent years, which NBB says is largely a result of the tax credit, and that fuel often receives subsidies in its country of origin. Argentinian biodiesel producers, for example, receive incentives under their country’s Differential Export Tax regime, then they can ship to this country where it also can qualify for the U.S. tax incentive.

Biodiesel, NBB

Secretary Perdue Shows Support for Renewable Energy

Cindy Zimmerman

During his first visit to Iowa as Secretary of Agriculture, Sonny Perdue made his support for renewable energy and ethanol perfectly clear.

“Do you know who I work for?,” the Secretary asked the local FFA officer who wanted to make sure he supported renewable energy. “I work for a fellow by the name of Donald J. Trump. Did you hear what he said during the campaign? Renewable energy, ethanol is here to stay…you have nothing to worry about.”

Listen here: Sec. Perdue ethanol question in Iowa

Secretary Perdue visited Couser Cattle Company in Nevada, Iowa where he was welcomed by Bill, Nancy and Tim Couser, as well as Iowa Senators Joni Erst and Chuck Grassley, and Rep. Steve King. Looking comfortable in worn jeans, Perdue related that he calmed Sen. Grassley’s concerns about him as secretary when he told him, “I got 12 grain elevators, all we do is corn, wheat and beans and we sell to an ethanol plant.”

Couser, who is co-founder of Lincolnway Energy ethanol plant in Nevada, presented Perdue with his custom made corn products display, as well as a Don’t Mess with the RFS button from the Iowa Renewable Fuels Association.

Perdue held a round table discussion with Iowa biofuels and agricultural leaders and answered questions during a town hall event, all held on the Couser operation. During his visit to Iowa, Perdue also met with current Governor and soon to be Ambassador Terry Branstad, and incoming governor Kim Reynolds.

Check out USDA’s photo albums on Flickr. Watch the Facebook Live video on Iowa Agribusiness Radio. Download audio of Perdue’s introduction and remarks here: Sec. Perdue visit to Iowa

Audio, Ethanol, Ethanol News, USDA